If you really want to sell your home, either to downsize or purchase a bigger home, correctly pricing your property is very important and here is why:
1) Overprice your property – you help sell your competition… Buyers and their Agents are looking at a variety of properties, if not all in person, the possibility exists they are looking online, too. Experienced and knowledgeable Agents know the inventory and their clients do as well. Say they are looking at four properties one day, all four bedrooms in the same area, and yours is the highest priced. What now? The other properties seem like great deals compared to yours. The mentality of just listing it at your ideal price thinking the buyers can “throw you a lower offer” doesn’t really work. Start off marketing your property adequately by pricing it correctly – or chances are you will sit watching every. other. house. sell.
2) Search. Search and More Search…Buyers will most likely start their home search working with their Agent who will notify them of properties for sale within their (the buyers’) criteria. If a buyer only wants to spend, say, $450K, your overpriced home at $465,00 might not be included. Keep in mind, in addition to the MLS, the major real estate websites have filters such as maximum price. (again, by entering $450K, your $465K home may not be shown). Say your home really should be priced at $445K – don’t waste valuable market time by not going with your power pricing at the beginning. Plus, you will reach even more buyers – most buyers search in $25K or $50K increments. Homes for sale and homes that sold are on the Internet and in print. Purchase prices are no secret. Agents and buyers can spot an overpriced home quickly.
3) Buyers May Want to Make Updates… Sure you may love your home and feel it is worth X amount of money. However, it is important to remove the personal feelings for your home and move into a mindset of correct market positioning. Truth of the matter is no two buyers are the same, and while you may like features and finishes in your home, not all buyers might. They may want to make changes, which they are calculating as costing them even more $$.
4) Time is Money… Having your home priced higher than the competition not only deters buyers, but it may end up costing you more in the long run. Why risk valuable market time, which is noted on the MLS and online, by pricing higher than where you should be to “test the market?” It doesn’t work. You run the risk that, like noted first, you will sell the competition because those are perceived as such good deals, and then your listing may become stale and the numerous days on market may lead to buyers thinking something may be wrong. Keep in mind: it is not uncommon for some to sell for less many months or years later than what they could’ve just listed their property for in the beginning. If you truly want to move, it is very advantageous to start off right. All the marketing in the world can’t sell properties that are too high.
If you are not getting showings, or offers, it is either price or condition, so act accordingly.
Image courtesy of [image creator name] / FreeDigitalPhotos.net
Like this blog in general, this post is written by a licensed marketing director. This is solely information based on many years of experience in the business and fact. Any similarities are just that.